Security Bank set to give MUFG clients access to cash management system

April 8, 2021 | 12:01 am

SECURITY BANK Corp. and Mitsubishi UFJ Financial Group, Inc. (MUFG) have expanded their partnership to give their clients access to cash management services.

The deal signed virtually on March 18 will give MUFG clients access to Security Bank’s cash management system called DigiBanker, the lenders said in a joint statement sent to reporters on Wednesday.

“We have no doubt this agreement will significantly enhance our service delivery and facilitate greater business flow across the region,” MUFG Country Head for the Philippines Yuichi Yamagishi was quoted as saying in the statement.

Through the deal, MUFG clients can expand their collection network in different parts of the Philippines through the DigiBanker platform.

The Japanese bank’s clients will also be able to tap Security Bank’s system for their disbursement requirements, either through online or check payments.

“MUFG’s corporate clients will gain access to the full range of Security Bank’s cash management portfolio. Our partnership is an incredible opportunity for us to take the best of Security Bank and MUFG and raise the bar for financial service excellence in the region,” Security Bank President and Chief Executive Officer Sanjiv Vohra was quoted as saying.

Security Bank’s partnership with MUFG dates back to 2016 when the Japanese bank bought a 20% stake in the local lender.

The listed lender’s net profit declined 26.7% to P7.4 billion in 2020 from P10.1 billion in 2019 as it hiked its credit loss provisions amid the ongoing pandemic.

Security Bank’s shares closed unchanged at P123 apiece on Wednesday. — LWTN

Huawei positions to be provider of new components of smart cars

April 8, 2021 | 12:01 am

CHINESE multinational technology company Huawei Technologies Co., Ltd. is positioning itself as a provider of new-added components of intelligent cars.

“The auto industry is now moving into a phase where it needs to digitally transform itself,” Ken Hu, Huawei’s rotating chairman, said at a virtual briefing on March 31.

“Huawei positions itself as a provider of new-added components of intelligent cars. This positioning is based on our belief that the information and communications (ICT) technologies we have developed would be very competitive,” he added.

He said the goal of the company is to enable car original equipment manufacturers (OEMs) to build better vehicles.

On its website, the company said it offers the following products to car OEMs: MDC (mobile data center) in-vehicle computing platform and intelligent driving subsystem solution; Octopus, a cloud service for autonomous driving (training, simulation, test); 4G/5G in-vehicle communication module/T-Box and network solutions; and HUAWEI HiCar people-car-home connectivity solution for all scenarios.

“Because of our efforts over the past years, we have built up a very solid knowledge base in the ICT industry. We have built on the ICT industry with continuous innovation. As such, ICT now and innovation represent a lot of what we can do to help the auto industry to digitally transform,” Mr. Hu said.

Huawei offers an internet of vehicles (IoV) solution that integrates data, devices, and operational management.

“Through the implementation of unified and secure network access, flexible device adaptation, and mass data collection and analysis, IoV contributes significantly to generate new potential revenue sources,” the company said on its website. — Arjay L. Balinbin

How much did each commodity group contribute to March inflation?

April 8, 2021 | 12:00 am

Philippines’ intellectual property rank and score slip in global list

April 8, 2021 | 12:00 am

How PSEi member stocks performed — April 7, 2021

April 8, 2021 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Wednesday, April 7, 2021.

PSE index rises on hopes of economic recovery

April 7, 2021 | 9:00 pm

STOCKS continued to rise on Wednesday on investor optimism following the slower inflation print recorded last month.

The Philippine Stock Exchange index (PSEi) rose by 61.6 points or 0.93% to close at 6,651.71 on Wednesday, while the broader all shares index went up by 41.94 points or 1.04% to 4,044.94.

“Investors chose to be optimistic despite concerns of an extended lockdown due to surging COVID-19 (coronavirus disease 2019) cases,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said via e-mail.

“Inflation figures for the month of March, which came in lower than the month before, has given investors some hope that prices of commodities have started to stabilize, soothing fears of runaway inflation which would hurt the struggling economy further. The lack of selling prompted bargain hunters to look for opportunities in battered issues,” Mr. Mangun added.

Headline inflation was at 4.5% in March, the Philippine Statistics Authority reported on Tuesday, slowing from the 4.7% print in February but faster than the 2.5% seen in March last year.

Inflation averaged at 4.5% for the first quarter, beyond the central bank’s 2-4% annual target as well as its 4.2% forecast for 2021.

Meanwhile, Timson Securities, Inc. Trader Darren T. Pangan said the gains posted by the PSEi also reflected offshore developments.

“The market ended higher together with most Asian markets, on growing optimism over the world’s economic recovery, especially after the IMF (International Monetary Fund) lifted their outlook on their global growth forecast,” Mr. Pangan said in a Viber message.

Majority of the PSEi’s sectoral indices went up on Wednesday, except for mining and oil, which dropped by 53.09 points or 0.61% to 8,529.01.

Meanwhile, property gained 81.42 points or 2.52% to 3,312.83; holding firms improved by 43.71 points or 0.64% to finish at 6,800.23; industrials went up by 44.66 points or 0.5% to 8,935.95; services increased by 5.59 points or 0.39% to 1,439.22; and financials inched up by 5.3 points or 0.38% to close at 1,390.04.

Value turnover decreased to P6.05 billion on Wednesday with 3.41 billion shares switching hands, from the P5.85 billion with 2.42 billion issues traded on Tuesday.

Advancers outnumbered decliners, 147 against 57, while 46 names closed unchanged.

Net foreign selling climbed to P667.2 million on Wednesday from P551.88 million in the previous trading day.

“Thursday being the last trading day of the week, significant support may be drawn at the 6,400 area, while next resistance may be set at the 6,950 level,” Mr. Pangan said. Financial markets are closed on Friday in observance of the Day of Valor.

“PSEi is currently up 3.2% for the week, and although we may see some profit taking on the last trading day, it may still end with some gains for the week,” AAA Southeast Equities’ Mr. Mangun added. — Keren Concepcion G. Valmonte

Peso declines vs dollar on lockdown concerns

April 7, 2021 | 9:00 pm

THE PESO closed sideways against the greenback on Wednesday as the market awaits clarity on restrictions on movement after this week and new signals from the US Federal Reserve.

The local unit closed at P48.585 per dollar on Wednesday, depreciating by 1.5 centavos from its P48.57 finish on Tuesday, data from the Bankers Association of the Philippines showed.

The peso opened yesterday’s trading session at P48.53 versus the dollar. Its weakest point was at P48.625, while its intraday best was at P48.52 against the greenback.

Dollars exchanged inched up to $581.8 million on Wednesday from $559.3 million on Tuesday.

The peso depreciated slightly amid concerns over the possibility of an extension of the tight restriction measures currently in effect in Metro Manila and nearby provinces, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

Presidential Spokesperson Herminio “Harry” L. Roque on Tuesday said the government is not keen on extending the strict lockdown in these areas, saying the government lacks funds for cash aid.

Mr. Roque said they are instead considering the recommendation of the Department of Health to switch to a modified enhanced community quarantine after the two weeks of strictest form of lockdown in the National Capital Region, Cavite, Laguna, Rizal, and Bulacan.

However, President Rodrigo R. Duterte on Wednesday skipped his weekly address to the nation on the coronavirus disease 2019 (COVID-19) situation in the country and the Palace did not provide further explanation regarding his absence.

COVID-19 infections rose 6,414 on Wednesday to bring the total to 819,164, with active cases now at 158,701.

Meanwhile, a trader said the peso inched down versus the dollar due to “some caution ahead of the release of the Fed policy minutes.”

The Federal Reserve was expected to release the minutes from its last monetary policy meeting later on Wednesday, and market participants were set to parse it for any changes to the US central bank’s economic outlook, Reuters reported.

The US economy is heading for its strongest growth in nearly 40 years, the Fed said after its meeting last month, and central bank policy makers are pledging to keep their foot on the gas despite an expected surge of inflation.

Fed officials expect economic growth to remain above trend for at least two years to come, at 3.3% in 2022 and 2.2% in 2023, compared with estimated long-term potential growth of just 1.8%.

Opinions among the Fed’s 18 current policy makers did shift somewhat, with four now expecting rates may need to rise next year and seven seeing a rate increase in 2023.

Fed Chair Jerome Powell noted the “strong bulk” of the policy-setting Federal Open Market Committee (FOMC) anticipates no interest rate increase until at least 2024, and he added that it was even too soon to talk about scaling back the $120 billion of Treasury bonds and mortgage-backed securities the Fed is buying each month to further prop up the economy.

The FOMC’s policy statement, which kept the benchmark overnight interest rate in a target range of 0-0.25%, was unanimous.

Mr. Ricafort expects the peso to trade from P48.54 to P48.64 versus the dollar today, while the trader expects the local unit to move within the P48.50 to P48.70 levels. — LWTN with Reuters

Road right-of-way order seen easing cell tower construction

April 7, 2021 | 8:37 pm

CELLULAR TOWER construction is expected to accelerate after the Department of Public Works and Highways (DPWH) issued a department order granting telecommunications firms use of the government’s right of way on national roads, Globe Telecom, Inc. said.

The order authorizes telcos “to construct and undertake excavations and/or restoration works” for information and communications technology infrastructure projects within the “allowable ROW (right of way) limits” of the national roads.

“With this, Globe sees faster network builds in the country after the government removed a major bottleneck that prevented telecom service providers from constructing crucial infrastructure projects along national roads,” the company said in a statement Wednesday.

Public Works Secretary Mark A. Villar issued Department Order No. 29 on March 23 “to facilitate the erection of infrastructure that will allow speedy expansion of telecommunication services and facilities while ensuring public safety, availability of government’s ROW, and the structural integrity of roads and bridges.”

The order lapses after three years.

According to Globe, the DPWH banned telcos in 2014 from erecting posts along national roads, citing the “imminent danger to lives and properties and hamper relief operations” during calamities.

“In October 2020, both the Department of Information and Communications Technology and the National Telecommunications Commission asked the DPWH to consider the proposed changes to the previous department order,” it added.

Globe said the restrictions “slowed down the rollout of critical telco infrastructure amid the rising demand for affordable, quality, and reliable” internet. — Arjay L. Balinbin

Economic team preparing to fund aid for prolonged lockdown

April 7, 2021 | 8:37 pm

ECONOMIC MANAGERS are studying sources of funds for a fresh cash aid program in the event that the lockdown imposed on the capital region and nearby provinces is extended once more or expanded to more areas.

Budget Secretary Wendel E. Avisado confirmed that the economic team is studying funding for another round of cash aid if called on to do so in a third stimulus bill.

Budget Undersecretary Laura B. Pascua has said that the Development Budget Coordination Committee (DBCC) approved a new cash aid program but did not authorize a breach of the deficit cap, set at the equivalent of 8.9% of gross domestic product (GDP).

Mr. Avisado made the remarks at the Kapihan sa Manila Bay forum Wednesday.

Mr. Avisado said possible funding sources are realigned agency budgets, the early remittance of dividends from government-owned and -controlled corporations (GOCCs), and other sources that can be tapped by the Department of Finance (DoF).

The proceeds will support another stimulus bill following the passage of the Bayanihan I and II laws last year, but added that the size of the aid program will be subject to funding availability.

“What about the other regions who may yet to experience the same kind of reclassification later on (who were not given the P1,000 cash aid). That’s the thing we’re also preparing for and by then, we would be needing the assistance of Congress for an enabling law similar to Bayanihan I and II,” he said.

“We’re trying to really look at what would be the approximate amount the DoF can raise and those that we can also gather from available funds from various National Government agencies to help finance a Bayanihan III law,” he added.

GOCCs remitted a combined P21.44 billion worth of dividends to the Treasury in the first quarter as state-owned firms remitted their dividends ahead of schedule.

The DoF last week raised the equivalent of P24 billion from a three-year Samurai bond issue and is planning to tap the US bond market soon before rates rise.

Mr. Avisado said the economic team is also working on an Executive Order that will instruct agencies to reduce nonessential expenses, similar to instructions issued last year.

Much of the redirected funds are likely to come from budgets for maintenance and other operating expenses, including money for travel and seminars, as well as the cancellation of programs not yet implemented.

Mr. Avisado said funds for the flagship Build, Build, Build program will not be reduced because infrastructure projects are deemed important in driving the economic recovery. The government budgeted P1.2 trillion for infrastructure projects this year, out of an overall P4.5-trillion spending plan.

He said the overriding goal is to keep the sovereign credit rating in the middle of the pack in the region, in order to keep borrowing costs low.

“We are also very much concerned about our capability to ensure that our economy gets going. It cannot just be that we’re putting all our energies into health but (strike a balance) to ensure that our economy is still moving ahead,” Mr. Avisado said.

The lockdown in Metro Manila, Bulacan, Cavite, Laguna and Rizal was extended for another week to April 11 after daily coronavirus cases surged past the 10,000 level. A further extension of the enhanced community quarantine is unlikely and restrictions in these areas will likely be eased next week, the Palace has said.

Economic managers expect the two-week lockdown to have set back GDP growth by about 0.8 percentage points, to below the official projected range.

The DBCC has set a 6.5-7.5% growth target for this year and projected 8-10% growth in 2022. The economy contracted by a record 9.5% in 2020 as the Philippines implemented one of the world’s longest and strictest lockdowns. — Beatrice M. Laforga

Business solutions costs falling as digitization gains momentum

April 7, 2021 | 8:37 pm

DIGITAL BUSINESS solutions are becoming cheaper in the so-called “new normal” as businesses continue to digitize their processes, a technology industry executive said.

“In general, if you wanted to invest in software 10 years ago, when we started the business, you really had to be ready with millions of pesos. It used to be very costly because you had to hire developers, ask them to customize software for you, purchase your own servers, and stuff like that,” said Maria Rosario Palabrica-Ilao, founder and chief executive officer of MobileOptima, Inc., the technology company behind Tarkie, an enterprise solution designed for field force automation.

“Technologies in general are now becoming more and more affordable,” she said at the BusinessWorld Insights online forum Wednesday.

With Tarkie, which is a SaaS or software as a service application, small businesses can start down the path of automation for as little as P1,500 per month, according to Ms. Ilao.

She noted that SaaS applications are becoming more popular these days because of low cost, ease of use, and can come off the shelf.

“They are plug and play, you can get started right away, and there’s no upfront cost as you don’t have to spend for software development, and you don’t have to purchase your own servers because typically all of these are already packaged in the monthly subscription,” Ms. Ilao explained.

Jerome Matthew Animos, field applications engineer at ASUS Philippines Commercial, said that pricing will depend on the technology needed.

“It’s going to be a different ball game if you compare it to Ms. Rio’s proposition. On our end, we ask first what the employees do and who are involved in the procurement process. So we need to ask them the right set of questions before we give them something in detail, because we don’t want our customers to get shocked with the pricing and everything,” he said.

“We give them a certain tier of devices that we actually offer to them to give them a better insight. In my presentation, normally, I show the good and better devices to give them an insight based on their workflow,” Mr. Animos added.

ASUS’s centralized information technology management system and personal computer-based management platform are two of the company’s digital solutions for businesses.

Mr. Animos expects that in the next decade, artificial intelligence of things or AIoT will become more widely used. AIoT, he said, is a combination of AI technologies with IoT that is intended to enhance human-machine interactions, data management, and analytics.

“Blockchain technology will become standard in day-to-day operations, from the simple time-in/time-out or even paying for your cup of coffee using cryptocurrency,” Mr. Animos added.

Ms. Ilao said, “I think it will only get better. I think the prospects are very promising. As we’ve mentioned, companies now in general have become more cognizant of the benefits of digitization. So definitely, more and more companies will embrace IT optimization and digital transformation in the next few years.”

“Gone are the days when big companies would prefer custom-built software. They would rather go for something that’s readily available, or something that’s plug and play. Small- and medium-sized enterprises in general are going to benefit from that,” Ms. Ilao added. — Arjay L. Balinbin

Overstaying cargo disposals generate over P138M in Q1

April 7, 2021 | 8:37 pm

THE Bureau of Customs (BoC) said it generated P138.7 million from the disposal of 586 overstaying containers in the three months to March, part of an overall effort to decongest the ports.

In a statement Wednesday, the BoC said it sold 354 containers at auction while condemning 232 others.

“Significantly, these disposition activities are aimed at efficiently facilitating trade by eliminating port and yard congestion, thereby ensuring smooth flow of business within the agency,” the BoC said.

The agency issued Circular Memorandum Order No. 10-2020 in April 2020, declaring that cargo in ports and yards found to have overstayed more than 30 days from the date of discharge will be classified as abandoned.

Disposals helped make way for incoming shipments of critical goods, including food, medical items and personal protective equipment.

The BoC is authorized by law to donate, declare for official use, or sell at auction seized or abandoned items. Food, clothes, medicine and other goods that are suitable for shelter can also be donated to the Department of Social Welfare and Development.

Last year, the agency raised P1.077 billion by disposing of 3,514 overstaying containers. — Beatrice M. Laforga

Wellbeing programs increasingly highlighted in hiring process

April 7, 2021 | 8:37 pm

GLOBAL ADVISORY firm Willis Tower Watson said over 80% of Philippine companies plan to use wellbeing programs to attract talent after identifying stress as a major employment issue during the coronavirus disease 2019 (COVID-19) pandemic.

In a statement Wednesday, Willis Towers Watson said the findings were contained in a study of 122 companies known as the Wellbeing Diagnostic Survey conducted between October and November. Of the survey participants, 85% said they will promote wellbeing programs in hiring.

“Five years ago, over half of the employers in the Philippines indicated that, while they offered various programs, they did not have a formally articulated wellbeing strategy. Today, not only do many employers have a strategy in place, 85% plan to use it as a differentiator to compete for talent in three years,” said Willis Towers Watson Head of Health & Benefits Philippines Susan La Chica in a statement Wednesday.

Ms. La Chica said the study found that 83% of employers view stress as a labor concern, after work pressures intensified due to the COVID-19 crisis.

Companies are also looking to upgrade programs to adjust to their employees’ rising stress levels. Willis Towers Watson Head of Business Development and Medical Director Demosthenes Villarin, Jr. said employers view their current programs to be no longer sufficient.

“The pandemic has taken its toll on employees, especially in terms of their physical and emotional wellbeing. In fact, the impact is so great that many employers expect these effects will continue in a post-vaccine environment. Fragmented programs that act as band aids for short-term concerns are no longer sufficient. Many employers are now acting with urgency as they look to take their wellbeing programs to the next level and also address the changing needs and demographics of today’s employees,” he said. — Gillian M. Cortez